April 16, 2010
The Wichita Business Journal
Renovations at Governeour Manor began in the fall.
A big part of the reconstruction process has been focused on green building practices.
The project is expected to receive an Energy Star rating of five stars, the highest score possible for a renovation.
Residents who have relocated into finished units have reported 40 percent to 50 percent energy savings, says Larry Shoemaker, vice president of Builders Construction.
The renovations include the removal of one of the complex’s two swimming pools for the construction of a communal clubhouse and the addition of four new Americans with Disabilities Act-compliant apartments.
Builders has also teamed with Habitat for Humanity and is donating the used building material it replaces for use elsewhere.
Way believes Builders’ history with the tax credit program and its focus on energy efficiency at Governeour’s Manor made the project appealing to the state.
“It really fit the profile of what the state likes,” she says. “I think that’s why (the state) was so excited about this project.”
A BETTER DEAL
Builders also has used housing tax credits on similar projects at its Parklane Gardens, Pinecrest Village and Parklane Apartments properties.
And, as with those projects, Builders will keep the credits to offset taxes during the next 10 years – rather than selling them to investors as most developers do as a way to raise capital. Builders is financing the Governeour Manor project itself.
Fred Bentley, director of the rental housing division at the Kansas Housing Resources Corp., says it’s not common that companies are able to utilize the tax credits the way Builders does.
The company doesn’t need to sell the credits for the 70 to 80 cents on the dollar they typically bring. Because of that, Bentley says, the state’s money goes into the project at a dollar-for-dollar level.
“It’s a better deal for the public because we’re getting a better deal,” Bentley says. “If we could do everything this way it would be better.”